Hiring an employee in the USA

We're an Israeli Company that wants to expand to the USA, we have already close the commercial details with a very experienced executive in the USA, now we have to decide how we can hire him, we asked if hes ready to work as a contractor (freelance) and the answer was no.

As far as we know we have only 2 options, to open a company on the USA or to try to find an umbrella (that's how they call it in the UK) company that hires him and he pays him directly.

Does someone know any company like that? pros and cons?

We definitely prefer not to open a company at the beginning as it is a big expense with the risk that the representation will not work and we will have to fire him and all the money for the company oppening will be lost.

Thanks for the help!

Opening a company is not a big expense: costs about $400 (https://www.delawareinc.com/index.cfm) - a lot simpler than in Israel

You should talk to a local attorney, but you will probably more protected by having this person work for you, not a third party (IP, trade secrets, agency, etc)

Insperity (formerly Administaff not sure why they'd change their name to something so worthlessly generic, but w/e) is what you're looking for: https://www.administaffservices.com Edit: it looks like they might not be doing it any more?

Also you might be able to go through someone like Matrix Resources. They'd hire/pay benefits for the employee, but you'd just pay an hourly or salary rate to Matrix.